BANGKOK, June 14, 2001--Asia is well placed to benefit from globalization, the information and communications revolution, and the emergence of a new "knowledge century", participants in the Third Asia Development Forum concluded today.

As Asia starts to reemerge as the most dynamic region in the developing world, governments, the private sector, non-governmental organizations and their partners among the multilateral institutions are seeking new ways of meeting the challenges of a more competitive era.

It is generally agreed that the 'new economy' offers big potential to improve living standards, reduce poverty--especially in rural areas--and protect the environment. Greater scope for trade and regional cooperation is also opening up.

"The primary challenge for Asia in the new century will center on how best to meet the increasing pressures of global competition in light of the knowledge-based economy and the equally urgent need to close the digital divide, cope with the convergence of diverse technologies, and develop a new paradigm of development based on globalization and localization," the Prime Minister of Thailand, H.E. Thaksin Shinawatra, told participants in the forum's keynote speech.

But while many parts of Asia possess the education, skills, experience and potential to take full advantage of the 21st century, complacency needs to be avoided, participants cautioned. Despite the many new opportunities, risks are apparent, including an increased vulnerability to economic and social crises; further marginalizing of the poor through a limited ability to access the skills and means to live in a knowledge economy; the threat of "cyber crime"; and the spread of HIV/AIDS and tuberculosis.

"All of us are concerned with restoring growth momentum in Asia. It can be done by enhancing the capacity to innovate, by utilizing the opportunities presented by information and communications technology, and by capitalizing on regional and global economic and financial integration," Vice President of the Asian Development Bank (ADB) Myoung-Ho Shin told the forum.

This is a time, it was decided, to redouble efforts across Asia aimed at improving education and skills training, bridging the digital divide between the rural poor and emerging economic opportunities, and stimulating innovative techniques essential to the region's chances of maintaining its competitive edge.

Participants agreed that despite growing interest in the potential of the information and communications revolution, it is critical not to allow attention to drift from the need to keep up the momentum of economic reforms, complete corporate and financial restructuring, and combat corruption.

"We live in a period when countries must adapt quickly and imaginatively to changing times in order to maintain their international competitiveness and achieve the growth necessary to reduce poverty," the World Bank's Vice-President for East Asia and the Pacific, Jemal-ud-din Kassum, told the forum. "Our task is to harness the benefits of the information revolution and the forces of globalization to empower the poor and deliver a higher quality of life to them."

The forum stressed the need for developing countries to take measures to prevent financial crises in the future including the development of capital markets. "Considering the nature of the 1997/98 Asian financial shock, development of the capital market is an important policy issue that needs to be addressed to prevent another crisis in the region," said Dean of ADB Institute Masaru Yoshitomi. "Since it takes time to develop capital markets, the banking industry needs to be strengthened through close monitoring of family businesses; government bonds should be issued regardless of its fiscal position; and universal banking should be introduced."

The forum also addressed new and persistent challenges affecting societies. "Persistent poverty and the depletion of natural resources, and cyber-crime and the burden of rising HIV/AIDS infections in the region, are all posing threats to the traditional and the new economy," said Kim Hak-Su, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (UN ESCAP).